Congressman Lance Renews Push to Repeal Device TaxCongressman Lance Renews Push to Repeal Device Tax

Congressman Leonard Lance of New Jersey has cited the recent report from AdvaMed as further evidence that the medical device tax will harm New Jersey's (and the nation's) economy. The 2.3% tax, which is slated to go into effect in 2013, could lead to a nearly 11% cut in employment in the medical device sector, according to the report, which is titled “Employment Effects of the New Excise Tax on the Medical Device Industry.” The report also predicts that the tax will add $2.67 billion to the industry's annual tax bill, creating what is effectively one of the highest corporate tax rates in the world. 

New Jersey employs more than 60,000 people who work in the medtech sector. Companies calling New Jersey home include Bard, Baxter, Johnson & Johnson, 3M Health Care, ConvaTec, Roche, Stryker, Varian Medical Systems, and Zimmer Holdings.

“This study comes at a critical time as Congress focuses on job creation," Lance explained on his website. "New Jersey is home to more than 60,000 medical technology and related jobs.  And while we continue to be a world leader in medical innovation, this onerous tax on innovation could jeopardize the Garden State's leadership position."  

Lance is a sponsor of H.R. 436, the "Protect Medical Innovation Act of 2011," which would repeal the excise tax on medical devices. In addition, he has pushed to reform the 510(k) approval process.

 —Brian Buntz